Most people spend a lot of time and energy choosing the perfect place they can call home. While the buying process involves a variety of decisions and factors, one important factor that plays a huge role is if you should buy an existing house or build a new one?
While some people like the charm and stability of an older house, others are more drawn to a new place. Both choices have their own sets of pros and cons.
This article states both the pros and cons of buying a new house and building a new one.
Note: No matter what option you opt for, a qualified real estate auctioneer can be an enormous help while saving your time and sealing the deal.
Advantages of buying an existing home:
- You can move right away to your new place. If you’re a buyer on a tight schedule, buying an existing home might be the perfect choice for you.
- It is cheaper than building a new home. According to the National Association of Homebuilders, it is cheaper to buy an existing home rather than building a new one.
- The existing home is likely to be in an established neighborhood i.e. near school, restaurants, public offices, and work opportunities.
- You can window shop and investigate established homes and look for the best deal while applying for home loans.
Disadvantages of buying an existing home:
- Older homes or existing ones often need repair or renovations. This can ultimately increase the cost of the purchase.
- The insurance on older or existing homes is typically more than newer ones simply because they are often aren’t energy efficient.
- The house might not give you a new feel if you’re someone who is looking to start anew with your family.
- You might not get your perfect home. There is a high possibility that you might not like the bathroom color or wish that there was another bedroom on the main floor.
Advantages of building a new home:
- You can build a house that is more tech-friendly and energy-efficient. You are less likely to deal with maintenance issues as well.
- You are likely to get your perfect house. This factor alone is enough for many to choose building upon buying.
- Not only will you avoid some legal processes that home buyers have to go through, you will save on transfer duty as well.
- You’ll be more involved with the process and homeownership will feel more personal to you.
Disadvantages of building a new home:
- It can take months to build your house, and there can be delays and complications while building it.
- It will probably cost you much more than an existing house. So, if you’re tight on budget, consider buying an existing house.
- Since it can take months to build your new house, you will have to rent a property to live in.
- You’re limited to where and when you can build your new home.
So, is it cheaper to buy or build?
The answer to the above question largely depends on the location and your list of must-haves in a home. When you’re considering both options, there is no right or wrong answer. So, consider all the risks and benefits to get the most of your money.